Information Systems Management for Travel and Tourism - Coursework Example

Information Systems Management for Travel and Tourism Student’s name Course code + name Instructor Institution Date Table of Contents Table of Contents 2 Executive Summary 3 Introduction 4 Purpose 4 Scope 4 Research Approach 5 Research Problems 5 What Information systems are required to start a business in the Travel and Tourism Industry? 5 What hardware and software are required to set up a travel and tours company? 8 Associated costs of business access and licensing 9 Recommendations for investment 11 Executive Summary Tourism is an integration of transportation, accommodation, recreation and entertainment. As a result this industry has grown tremendously as more people in the world are interested in visiting and seeing new things and new places. Since tourism industry is one of the major world GDP contributors (of about 10 percent in most countries), there is a need for proper coordination and use of information and communication technologies. Coordination should be considered from the advertisement of the products offered through to when the consumer checks out of the travel destination. In order to effectively attain full coordination of business processes, there is a need to incorporate IT to all business processes that are related to the tourism and travel industry. Global Distribution Systems (GDS) enables these purposes of reserve management, hotel booking, issuing of tickets, booking of rental cars and flight check-in and check-out. IT is the collective term that incorporates computers and communication technology; it is used for processing, analyzing, storing, retrieving, application and dissemination of information. Therefore information technology is a vital component to a travel and tourism agency due to the many processes that the industry is associated with. According to Khare and Khare (2010), there are more than 5000 transactions per second worldwide and almost 70 percent of travel consumers have their bookings done online. Introduction This report explores the requirements of a good information system for travel agencies, for both old and successful travel agencies and newly established travel agencies. Basically, the report investigates the qualities of a good, suitable and reliable information system for travel agencies. Which will ensure the following: Maximum consumer satisfaction; wide information search (information search that will cater for consumers of different gender, age, nationality, educational background and life style preferences) and evaluation of travel alternatives in terms of the price or discount offerings. Furthermore this report will highlight the importance of a good information system to travel agencies as well as travel consultants and agents. Besides, the study will give the information systems that are associated with travel and tourism business as well as the hardware and software required to start the business in the industry. Purpose This report makes recommendations to travel consultants who are thinking or planning to start a business in the travel and tourism industry on the qualities of a reliable information system for a travel agency. In addition the report will recommend types of suitable information systems that affiliated to the travel and tourism sector. Scope Prior research and study were limited to already existing and successful travel and tourism companies and consultants. For the purpose of this report, the qualities of good information and the types of information systems are determined by the type of business or the tasks that they are supposed to execute and deliver the required outcomes to the business. A suitable information system ensures there is improvement in resource use and profitability of a tourism and travel company. This study was restricted to travel and tourism companies operating in London, UK. Research Approach This study aims at finding out the necessary information systems required for a business that is about to in the travel and tourism industry, the hardware and software needed to setup the business and the costs associated with starting the business such as licenses costs and other initial capital needs. Therefore, the research was majorly based on secondary data that relate to the topic, such as, journals, periodicals and newspapers were used. Research Problems The research problem can be broken down into three categories, namely: a) What information systems are required to start up a business in travel and tourism industry; b) What hardware and software are required to set up a travel and tours company. c). Yearly and monthly costs associated with business access and licenses and finally a recommendation that will enable the company to grow proportionally with the information systems. What Information systems are required to start a business in the Travel and Tourism Industry? Tourism information systems are the fresh type of business systems that facilitate the travel and tourism with e- tourism. These companies in the industry include airlines, hotels, car rental companies and travel agencies. E-Tourism encompasses both organizational and public information systems. Due to the presence of these many process affiliated with the industry. Such as, booking, hiring, selling, buying, confirming authenticity of passports, Ids, provision of transport, there is need for special information systems that will ensure effective and efficient ways of solving, performing and providing required outcomes. There is need for several information systems to start a business in the travel and tours industry. One of the most important things to note is that when starting a travel agency one should be able to provide intriguing and conclusive new options for the consumers that will effectively minimize time taken for customer service. Examples of information systems that enable smooth running of a travel agency are many depending on the duty that they are supposed to execute. Immigration technology such as the biometric passport is an example of e-tourism in broad sense, as it enables authenticity and validity confirmation of passports. According to Gretzel and Fesenmaier (2006), Central Reservation Systems (CRSs) and Global Distribution Systems (GDSs) - Sabre, Amadeus and Galileo, were developed by airlines and later by hotel companies to enable travel agencies to access pricing and schedule 491789 information and to request reservation for clients. Secondly, a travel agency is associated with reservations and inventory information management, therefore computer reservation systems (CRS) and electronic point of sales (EPOS) are major required systems that are required. These systems (CRS and EPOS), store and produce information as well as conduct the various transactions related to travel. Also, Global Distribution Systems are broadened forms of CRS that were initially used by airlines, but now there are used also by travel agencies and companies that are dedicated to GDS business. GDS systems enable consumers to access hotel reservations, available rental cars, tickets for events as well as airline tickets. Thirdly, companies in travel industry need to communicate with other, travel agencies, accommodation providers, transport providers and the customers. To do this the travel agency will require be having websites as to integrate and make travel agency internet enabled. The internet incorporates a conclusive management system that enables communication with the various intermediaries and users. Besides that, internet enabled management systems support and informs the company on the various trends and lifestyle preference and attractive destinations which enables the company to adjust the pricing corresponding to the fluctuations in demand, hence profits are maximized. Furthermore, the internet will enable efficient and effective interaction and interactivity between the company and the associated individuals in the industry. The fourth system required, is a systems that enables recommendation to the customers. Intelligent Recommendation for Tourist Destination Decision Making Projects (DieToRecs) is web based recommendation systems that help the tourist to select various destinations that they would like to visit. It also facilitates individual preferences which are based on the user profiles. For instance, the case of ‘Nutking.’ The Nutking enables the user to check on services such as, available hotel reservations, flight status, transportation status, traffic and weather conditions. The fifth requirement- the information system of travel agency should provide location based services for tourists. Users see information on tourist destination location as more useful because most of them act as their own personal travel agents. Therefore there is need a system that implements tourism–related value added services for nomadic these user mobile users. The Crumpet is an example of system that incorporates transportation means required, maps, and the conclusive detail of the destination and interesting facts of the tourist destination. Travel Control known as (TC Online) is a complete system made for specific purposes that are affiliated with tour operators; travel agencies and other Travel Services provided businesses. The System has all the require modules and works on Software as Service (SAS), a cloud based software. One is required to pay subscription fees to use the system. The TC can sell travel products through the internet to both customers and other travel associates in the industry (B2B and B2C), can also manage reservations, maintain records of book keeping and finance, enhance link with other branches with no cost which is attributable to cloud access. Lastly, the fact that tours and travel companies experience a lot of activities related to the field, there’s need for integration of these activities to minimize the time wasted and the amount of work done. Ambient Intelligence enables the integration of communication and computing into user friendly interfaces. Ambient intelligence personalizes and embeds computing and communication activities to aid users in different geographical areas to access. This enables users to book and look for tourist destination of their choice. What hardware and software are required to set up a travel and tours company? When going shopping for office products of travel agency you should consider buying hardware and software that are up-to-date. The required hardware is computers that are fast (possibly the latest Mac), printers for printing documents (laser or inkjet), phones for communication(two lines plus smart phones), scanners for verifying various documents, answering machines for recording unanswered calls, surge protector, digital cameras for internet conferencing or video calls, uninterruptible power supply to minimize delays in times of power shortages or blackout and office supplies like furniture. On the other hand, there are various software required for a travel agency, such as the latest operating system that will allow multi-tasking and the ability of opening more than one tab when computing, accounting software are needed to facilitate calculations, anti-viruses that are up-to-date. Generally, software like Softex TC offers a conclusive detail of modules that are essential to a travel and tours agency. Softex TC is developed to report in large proportions over different issues. Associated costs of business access and licensing To conduct business in the travel and tourism industry, a number of guidelines have to be set and adhered to the latter. Acquiring business access licenses have to be mandatory to be allowed to operate a tourism business. Applications have to be made to the right agencies and the necessary licenses acquired. There are a number of licensing rules and regulations that control the tourism industry. The level of governance depends on the sensitivity of the specific sector to be ventured into. Areas like national parks and environmentally sensitive areas need top notch licensing that is tough to get. A number of licenses have to be acquired Since Mr. /Mrs. Smith will be a sole proprietor, they would have to adhere to set rules about running a sole proprietorship business. As a sole business person, it is the mandate of the individual to run their own business. Profits accrued can be kept for oneself after paying taxes to the relevant authorities. The responsibility of the business lies on the individual running the business venture. Whether profits or losses get realized, the burden lies with the owner of the business. He/she is also responsible for the daily running of the business and matters arising from the business endeavor they become accountable for them. The business is obligated to pay taxes so a self-assessment tax return has to be sent every year to comply with the rules of conducting business. Also concerning tax, income tax has to be paid depending on the profits made. There is a national insurance policy that has to be duly filled and paid for. If the expectation of the business is to make more than 83,000 pounds a year, then the registration has to be done with the value added tax (VAT) sector (Protected travel services, 2016). For inbound tour activities, the business may need to have an inbound tour operator’s registration from the office of fair trading. Acquiring such licenses cost from 615 pounds to 1845 pounds. Furthermore a registration fee of around 90 pounds is required. All the details regarding the people associated with the business have to be given to the relevant authorities. Other businesses may wish to supply food as part of their business. Clients get hungry while travelling so they will rely on the travel agencies to provide food or tell them where they can get the best foodstuff. To do this, a food business license from the relevant local authorities is needed. Licensing costs in this category vary from one place to another so it is advisable to check from time to time to verify the prevailing costs. After successful completion of filing for a license, a license fee of 575 pounds is paid before a license of up to two years is issued. From here, the applicant’s travel agency is then listed in the Travel Agent Directory of the authority’s website. This gives the business the go ahead to start its operations legally and fully. The travel agency has two years and has to renew their license prior to the expiration on 31 December of the following year after the issuance of the license. Before the renewal the business has to give audited accounts for the previous two years. The business venture also has to gross annual turnover of business for the prior two years. All outstanding fees have to be paid and confirm all the particulars concerning the business. Any other information required by the licensing board has to be given to them in compliance with the rules. After a successful renewal, the license fee is again paid and the business venture then goes on with business. Recommendations for investment Travel agencies face a number of challenges but following some of the recommendations provided in this paper would help the investor avoid a lot of trouble that could lead to running out of business. Firstly, when starting the business the proprietors have to choose their area of operation. Specialization is required so that the business seeks to become the best at them than anyone else out there. Choose a few destinations or activities and set out to do them do them to the best of abilities. Customers of the travel agency have to feel they deal with a true specialist. Specialization gives customers what to look for exactly from a particular agency. The business has to be unique in its selling of experiences. Clients have to experience the uniqueness of the business for instance, getting them to special places and events when they need it. Again, the business has to handle the truly difficult and complex situations. Simple point to point trips are thing that can be done by clients themselves. What they really need a travel agency to do for them is give assistance with long and complex trips. Taking on complicated trips and making them simple for clients would greatly increase chances of success. Customers would like to have personalizes services. Provide clients with friendly ideas and recommendations which keeps them attached to the agency. These should be offered to any client right from the beginning of the interaction. While setting the whole business up, the venture should value and know its market. There are a variety of clients who need agency services. There are clients with a lot of money but with very limited time and those that have limited money but with a lot of time. A distinction has to be made between the two types and hence their handling should be different. Their needs also vary so and should be taken into consideration. The business has constantly to evaluate itself to ascertain whether it is really doing the best it can. The market in the travel agency business changes constantly over time. The services delivered have to be of the best value to the customers. The company has to ensure that it is getting competitive remuneration for services that it is offering. A number of methods have to be devised to ensure that the clients get the best value for their rates. All staff under employment has to be thoroughly trained on how to best handle customers to avoid issues of customer dissatisfaction. It is also advisable for travel agency businesses to work with net rates rather than take commission. It gives pricing some level of flexibility and a better cash flow. Working with commissions would probably lead to a lot of hustle to meet the minimum requirements. It is also recommended for any travel agency to always master their pitching strategies. Clients should get the notion that the company is a single unit in its operations. When clients continue to get the same feedback from staff, they will know that the company can be trusted and is reliable. Marketing of products has to be done well. One of the methods of marketing a company is having a good website. A good website has to have a good design, easy to maintain status, and compelling content. The company has to have a good website developer to ensure that the internet stays up to date with the daily changes needed in the sector. Engagement has to be maintained with clients in the social media. Face book, twitter, and Instagram represent some of the social networks that the company could use to stay in touch with clients. Social media is also important because from them customers can post reviews and feedback. The business would then know how to effectively adjust to best serve their customers (Tan, 2011). To successfully run a travel agency company it is also crucial to be responsive and reachable on most occasions. In the middle of travel, clients may need assistance on an issue and it the mandate of the company to be available to respond to these questions always. It is also recommended to partner with other agencies so as to achieve expansion goals. God relations have to be maintained with other players in the travel industry to bring together a feeling of trust and willingness to work together. Partnerships help form alliances which may turn to lifelong businesses. Finally, the travel agency business is always changing with time and technology. Therefore it is advisable to always be learning so as to improve as a business. Any business has to be ready for change always and adapt new methods of doing business within the sector to ensure continued growth. References Batinic, I. 2013, The Role Of The Internet in Contemporary Tourism in Travel Agencies Buisness, International Journalsof Cognitive Researchin Science, Engineering and Education, 1(2). Bethapudi, A. 2013, The Role of ICT in Tourism Industry, Journal of Apllied Economics and Business, 1 (4), 67-79. Buhalis, D & Costa, C. 2006, Tourism Management Dynamics, Elsevier Burlington publishers. Hjalager, AM. 2002, Repairing innovation defectiveness in tourism, Journal of Tourism Management, 23(5), 465- 474. Jadhav, SV. 2011, Information Technology in Tourism, International Journal of Computer Science and Information Technologies, 2(6). 2822- 2285. Khare, A & Khare, A. 2010, Travel and tourism industry yet to exploit the Internet fully in India, Journal of Database Marketing and Customer Strategy Management, 17(2), 106-119. Lohmann, M. & Schmücker, DJ. 2009, Internet research differs from research on Internet users: Some methodological insights into online travel research, Tourism Review 64 (1), 32–47. Protected travel services. 2016, UK travel laws and regulations, viewed 22 July 2016 Tan, B. 2011, 20 things every travel agent should do right now online and offline, viewed 20 July 2016 < https://www.tnooz.com/article/top-20-things-every-travel-agent-should-do-right-now-online-and-offline/> Read More